In this paper an analysis is made first of the definitions of the terms of "core competence", "primary operation", and "competitive superiority". Then this paper goes on to analyze the relations between them.Then the theoretical basis on which rests the act of outsourcing of primary operation is given.Taking the development of software industry as an example and implementing analysis of outsourcing case of software firms, the analysis given in this paper suffices to vindicate the fact that the primary operation run by an enterprise may be run on an outsourcing basis, too.Lastly, in this paper is suggested that the development of software industry in China be enlarged by starting an outsourcing co-operation between Chinese software businesses and their foreign counterparts.